By Elliott Wave International
On March 4, we spoke with Jim Martens, our Chief Currency Strategist. His Currency Pro Service is participating in our Pro Services Open House, a free week-long event that starts next Tuesday at elliottwave.com.
Elliott Wave International: Jim, it's a good time to talk about currencies, because the euro has just touched an 11-year low against the dollar. Did you ever think you'd live to see this day?
Jim Martens: Did I ever think I'd live to see this moment... Well, back in mid-2011, when EURUSD was trading near $1.50, we started talking about the upcoming retest of $1.1876, the 2010 low. We were convinced that the rally from that level was a correction -- so EURUSD would ultimately fall back to it. It took a while to get there because what followed was a wide-ranging sideways consolidation in EURUSD -- a triangle, in Elliott wave terms, an overlapping pattern labeled ABCDE that you see on this chart:
That triangle ended in May 2014 with EURUSD almost hitting $1.40. From that point we had been expecting a move below $1.1876 -- and we had lower targets, as well. Most of them have been hit, and the interesting thing is that now, all of a sudden, the idea of the dollar/euro parity is becoming popular. Someone at Goldman recently talked about parity by the end of 2017.
Elliott Wave International: Do you think we'll see parity? Continue reading "Market insight: U.S. Dollar at 11-Year High Against Euro"